SBI FlexiPay Home Loan: Features, Benefits, Cons
With rising real estate prices and higher interest rate, it has become very difficult for an average salary earner to pay monthly EMI or buy own house. Moreover they have to sacrifice their dream and buy small house instead of a bigger one. Considering the fact that young working professional face problem in getting a loan or paying higher EMIs in the initial phase of their career, India’s biggest bank State Bank of India has launched FlexiPay home loan. Also check out home loan for low income earners.
Here are the features of FlexiPay scheme:
- This scheme is launched only for salaried person public or private.
- They can get higher loan amount which is not possible under the existing home loan schemes in the market from various lenders.
- The biggest benefit of the SBI flexipay home loan scheme is that the loan borrower can pay only the interest during the pre-EMI period of 3-5 years. And in the later years, EMIs will be moderate.
- No pre-payment charges. This again is in favour of the loan borrower.
- The scheme also offers extending the loan tenure upto 25 – 30 years.
- With this flexibility, it is expected to give a boost to the reality sector which is currently facing a decline. Check out what to do after home loan is approved.
Cons of FlexiPay Scheme:
- If the salary does not rise then it will create burden on the borrower.
- If salary does not rise but interest rate increases then it will create financial trouble to the borrower.
Industry experts are of the opinion that FlexiPay home loan scheme is similar to teaser loan which the bank had launched some years back. This loan offered discounts in the interest rates or offered more loan to the value. However teaser loan scheme is already discontinued.